Security Code

S-10 CS Minami Shimabara-shi
Power Plant (east) (west）

11th FP（ended December 2022）

Asset Manager
Canadian Solar Asset management K.K.

Presentation Materials

Canadian Solar Infrastructure Fund, Inc.

Table of Contents
1. Financial Highlights ・・・・・・・・・

2

Financial Highlights of 11th FP ・・・・・・・・・・・・・

3

Portfolio Performance ・・・・・・・・・・・・・・・・・

4

Asset List ・・・・・・・・・・・・・・・・・・・・・・・

8

2. Major Topics ・・・・・・・・・・・・・

10

AUM Snapshot ・・・・・・・・・・・・・・・・・・・・・

11
12
13

Portfolio Diversification ・・・・・・・・・・・・・・・・・
Unit Price Performance ・・・・・・・・・・・・・・・・・
Debt Profile (1) ・・・・・・・・・・・・・・・・・・・・
Debt Profile (2) ・・・・・・・・・・・・・・・・・・・・
Bank Formation ・・・・・・・・・・・・・・・・・・・・

14
15
16

Impact of Curtailment and Installing
Online Curtailment Controller・・・・・・・・・・・・・・

17

ESG Initiatives (UN PRI・ESG Report) ・・・・・・・・・

18

ESG Initiatives (Granting of Tracking Information
・Power Sales with Premium) ・・・・・・・・・・・・・
ESG Initiatives (TCFD・SFDR) ・・・・・・・・・・・・・
ESG Initiatives (Green Finance) ・・・・・・・・・・・・
Aim for Further Diffusion of Renewable Energy drawing on
Positive Stance of the Japanese Government・・・・・・
Main Points of the Revised Renewable Energy Act・・・・

3. Management Policy・・・・・・・・・・
12th, 13th & 14th FP Business Forecast

19
20
21
22
23

24

・・・・・・・・

25

Historical and Forecasted Dividend・・・・・・・・・・・・

26

External Growth Strategy（Pipeline） ・・・・・・・・・・
Abundant Pipeline Centered on Sponsor-Developed Assets
Assisting CSIF’s Growth ・・・・・・・・・・・・・・・・・

27
28

Appendix ・・・・・・・・・・・・・・・

29

Canadian Solar Group’s Global Operations (2) ・・・・・・

30
31

Canadian Solar Group’s Global Operations (1) ・・・・・・
Value Creation using the Sponsor Group’s VerticallyIntegrated Model (manufacturer, developer, AM・O&M) ・Organizational Structure・・・・・・・・・・・・・・・・・
Asset List– Operational Result for 11th FP・・・・・・・・
ESG Initiatives (Environment) ・・・・・・・・・・・・・・
ESG Initiatives (Social)・・・・・・・・・・・・・・・・・
ESG Initiatives (Governance)・・・・・・・・・・・・・・
Status of Unitholders ・・・・・・・・・・・・・・・・・・
Balance Sheet for 11th FP・・・・・・・・・・・・・・・・
Statement of Income for 11th FP ・・・・・・・・・・・・
Portfolio Assets ・・・・・・・・・・・・・・・・・・・・・
Leasing Structure based on Basic and Valuable Rent ・・・
Stable and Balanced Cash Flow Distribution Policy
Supported by FIT System ・・・・・・・・・・・・・・・・
Characteristics of PV Plant Revenue ・・・・・・・・・・・
Overview of Output Curtailment・・・・・・・・・・・・・
Overview of FIP System・・・・・・・・・・・・・・・・・
Overview of Relevant Rules・・・・・・・・・・・・・・・
Disclaimer ・・・・・・・・・・・・・・・・・・・・・・・

32
33
34
36
37
38
39
40
41
42
44
45
46
47
48
49
50

1

1. Financial Highlights

2

Financial highlights of 11th FP
 In the 11th FP, the number of curtailments was significantly lower than in the same period of the previous year,
mitigating the impact on power generation. However, operating revenue and operating income fell short ofinitial forecasts because actual power generation fell short of forecast due to generally poor weather
throughout the period and the impact of Typhoon No. 14 in September. On the other hand, net income exceeded
the initial forecast due to the recording of insurance income.
 As a result, net income exceeded the forecast by JPY 23 million, which contributed to a JPY 61 increase fromthe forecast in distributions per unit to JPY 3,138. (Distribution in excess of earnings will be reduced by JPY 61,
and total distribution per unit will be maintained at JPY 3,750.)
Statement of Income
Data (million yen)
Operating revenues

11th FP(ended Dec. 2022)

10th FP

Forecast@
Aug.16, 2022

Actual
4,060

3,725

ActualIncrease /(Decrease)(vs Forecast)

3,715

(10)

Operating income

1,743

1,404

1,383

(21)

Income before income
taxes

1,509

1,190

1,214

23

Net income

1,509

1,189

1,213

23

Distribution per unit (including
distributions in excess of earnings)

3,903 yen

3,750 yen

3,750 yen-

Distributions per unit (excluding
distributions in excess of earnings)
Distributions in excess of earnings
per unit

3,903 yen

3,077 yen

3,138 yen

61 yen-673 yen612 yen(61) yen

Main difference (vs. forecast)
Operatingrevenues

OperatingexpensesNon-operating
incomes andexpenses

Decrease invariable rent

(10)

Increase in
Repair costs(16)

Decrease inprofessional fees

6

Insurance income

393Portfolio Performance Actual power generation fell below the initial forecast except in November due to damage from fallen trees at
the S-24 CS Hiji-machi Dai-ni Power Plant caused by Typhoon No. 14 and a nationwide decrease in sunshine
hours throughout the 11th FP.
 11th FP actual energy output ÷ projected energy output = 96.69%(9th FP (corresponding period of the previous year): 95.87%)

 Total energy output

Projected

96.1%

Actual
97.4%

89.0%

96.9%

106.1%

96.8%

 Energy output by projectS-01 CS Shibushi-shi
Power Plant

S-02 CS Isa-shi
Power Plant

S-03 CS Kasama-shi
Power Plant

S-04 CS Isa-shi Dai-niPower Plant

4

Portfolio Performance
S-05 CS Yusui-cho
Power Plant

S-06 CS Isa-shi Dai-sanPower Plant

S-07 CS Kasama-shi
Dai-ni Power Plant

S-08 CS Hiji-machi
Power Plant

S-09 CS Ashikita-machi
Power Plant

S-10 CS Minami
Shimabara-shi
Power Plant (East & West)

S-11 CS Minano-machi
Power Plant

S-12 CS Kannami-cho
Power Plant

5

Portfolio Performance
S-13 CS Mashiki-machi
Power Plant

S-14 CS Koriyama-shi
Power Plant

S-15 CS Tsuyama-shi
Power Plant

S-16 CS Ena-shi
Power Plant

S-17 CS Daisen-choPower Plant (A&B)

S-18 CS Takayama-shi
Power Plant

S-19 CS Misato-machi
Power Plant

S-20 CS Marumori-machi
Power Plant

6

Portfolio Performance
S-21 CS Izu-shi
Power Plant

S-22 CS Ishikari
Shinshinotsu-muraPower Plant

S-23 CS Osaki-shi
Kejonuma Power Plant

S-24 CS Hiji-machi Dai-niPower Plant

S-25 CS Ogawara-machi
Power Plant

7

Asset List – Power Plant Data, Valuation and etc.
No.

Project nameLocation

Acquisition Valuation Price
Portfolio
Price(million yen)%(million yen)
(Note)

Panel
Output(kW)

FIT Price Electric Power
service area(yen)

Curtailment
rules

Onlinecurtailment
system status

S-01 CS Shibushi-shi Power Plant

Shibushi-shi,
Kagoshima

540

468

0.6%

1,224.00

40

Kyushu30-day rule○

S-02 CS Isa-shi Power Plant

Isa-shi, Kagoshima

372

311

0.4%

931.7740

Kyushu30-day rule○

S-03 CS Kasama-shi Power Plant

Kasama-shi, Ibaraki

907

870

1.2%

2,127.84

40

Tokyo

30-day rule

S-04 CS Isa-shi Dai-ni Power Plant

Isa-shi, Kagoshima

778

645

0.9%

2,013.99

36

Kyushu30-day rule○

S-05 CS Yusui-cho Power Plant

Aira-gun, Kagoshima

670

557

0.8%

1,749.30

36

Kyushu30-day rule○

S-06 CS Isa-shi Dai-san Power Plant

Isa-shi, Kagoshima

949

802

1.1%

2,225.08

40

Kyushu30-day rule○

S-07 Plant

Kasama-shi, Ibaraki

850

744

1.0%

2,103.75

40

Tokyo

30-day rule

S-08 CS Hiji-machi Power Plant

Hayami-gun, Oita

1,029

865

1.2%

2,574.99

36

Kyushu30-day rule○

S-09 CS Ashikita-machi Power Plant

Ashikita-gun,
Kumamoto

989

844

1.2%

2,347.80

40

Kyushu30-day rule○

S-10 Plant (East & West)

CS Minamishimabara-shi Power

Shimabara-shi,
Nagasaki

1,733

1,525

2.1%

3,928.86

40

Kyushu30-day rule○S-11 CS Minano-machi Power Plant

Chichibu-gun,
Saitama

1,018

982

1.3%

2,448.60

32

Tokyo

30-day ruleS-12 CS Kannami-cho Power Plant

Tagata-gun,Shizuoka

514

482

0.7%

1,336.32

36

Tokyo

30-day ruleS-13 CS Mashiki-machi Power Plant

Kamimashiki-gun,
Kumamoto

19,751

19,31826.2%

47,692.62

36

Kyushu30-day ruleS-14 CS Koriyama-shi Power Plant

Koriyama-shi,
Fukushima

246

218

0.3%

636.0032

Tohoku30-day rule

S-15 CS Tsuyama-shi Power Plant

Tsuyama-shi,
Okayama

746

666

0.9%

1,930.50

32

Chugoku

30-day rule

CS Kasama-shi Dai-ni Power

○

○

8

Asset List – Power Plant Data, Valuation and etc.
No.

Project name

S-16 CS Ena-shi Power Plant

Location
Ena-shi, Gifu

S-17 CS Daisen-cho Power Plant(A)(B) Saihaku-gun, Tottori

Acquisition Valuation Price
Portfolio
Price(million yen)%(million yen)
(Note)

757

720

10,447

9,227

1.0%

Panel
Output(kW)

Electric
Power
service area

Curtailment
rules

Onlinecurtailment
system status

Chubu

360-hour rule○

40 Chugoku

30-day rule

13th FP(Scheduled)○

FIT Price(yen)

2,124.20

32

12.2% 27,302.40

S-18 CS Takayama-shi Power Plant

Takayama-shi, Gifu

326

291

0.4%

962.2832

Chubu

360-hour ruleS-19 CS Misato-machi Power Plant

Kodama-gun,
Saitama-ken

470

417

0.5%

1,082.88

32

Tokyo

30-day ruleS-20

Igu-gun, Miyagi

850

737

Izu-shi, Shizuoka

4,569

4,073

Ishikari-gun,
Hokkaido

680

594

0.8%

2,384.64

S-23 Plant

Osaki-shi, Kejonuma

208

193

0.3%

954.99S-24

CS Hiji-machi Dai-ni Power Plant

Hayami-gun, Oita

27,851

27,253S-25

CS Ogawara-machi Power Plant

Shibata-gun, Miyagi

CS Marumori-machi Power Plant

S-21 CS Izu-shi Power Plant
CS Ishikari Shinshinotsu-mura

S-22 Power Plant

CS Osaki-shi Kejonuma Power

Total(Note)

2,745

2,712

80,00175,5192,194.50

36

TohokuUnlimited andUncompensatedrule

5.4% 10,776.80

36

Tokyo

30-day rule

1.0%

Unlimited and24 Hokkaido Uncompensatedrule
Unlimited and
21 Tohoku Uncompensatedrule

35.1% 53,403.66
3.5%

40

7,515.35

100.00% 183,973.12

32-○
13th FP(Scheduled)○○

Kyushu30-day rule○

TohokuUnlimited andUncompensated
rule

○

-

-

-

“Price” refers to the median project valuation report amount, which is the estimated values provided to us by PricewaterhouseCoopers
Sustainability LLC (S01 – S18) and Kroll, LLC (S-19 – S-25) in its project valuation reports as of December 31, 2022.

92. Major Topics

10

AUM Snapshot
 A summary of AUM as of the end of 11th FP. The fund has 25 power plants with total panel output of 184
MW and the total acquisition price is approximately ¥80Bn, which maintains the largest scale among thelisted infrastructure funds
 Historical valuation and book value(after depreciation)<Portfolio as of the end of 11th FP># of projects

Panel output
of AUM(Note)

25 projects
183.9 MW

Total acquisition
price as of theend of 11th FP
Total valuation
price(Note) as ofthe end of 11th FP(JPY billion)

Valuation price

80.00
70.00
60.00
50.00
40.00
30.00
20.00

¥80.00 Bn¥75.51 Bn

33.86

47.09
35.96

30.44 31.11

First PO (Sep. 2018)

IPO acquisitions (Oct. 2017)
CS Mashiki-machi
PP

CS Mashiki-machi
PP

Acquired 13 projects with
72.7MW total panel output

100

2nd FP acquisitions

80

Acquired 2 projects with
2.5MW total panel output

60
40
20
0

42.07 42.67

75.27 73.86

51.49 49.58 48.89

72.41

71.03

46.47 45.57 45.35“Price” refers to the median project valuation report amount, which is the estimatedvalues provided to us by Pricewaterhouse Coopers Sustainability LLC andKroll, LLC in its project valuation reports as of December 31, 2022.

 Track Record of Consistent External Growth (acquisition price basis)(100Mn yen)

50.02

Book value79.03 77.17 76.36 75.51

0.99
30.11

31.10

上場時
2017年10月

第2期（2018年6月）

IPO
Oct 2017

Acquired 3 projects with
30.3MW total panel output

Acquired 2 projects with
3.3MW total panel output

4th FP acquisitions

5th FP acquisitions

Acquired 2 projects with
3.2MW total panel output

Acquired 1 project with
10.7MW total panel output

42.63

43.95

第3期
（2018年12月）

第4期（2019年6月）

Second PO (Mar. 2021)
CS Hiji-machi DaiNi PP

CS Ogawara-machi
PP

2 projects have beenacquired with 60.9MW total
panel output

30.59

0.89

4.57

1.32

11.53

7th FP acquisitions

48.52

48.52

49.40

第5期
（2019年12月）

第6期（2020年6月）

第7期（2020年12月）

100.0
80.00

80.00

80.00

第8期
（2021年6月）

第9期（2021年12月）

第10期（2022年6月）

2nd Fiscal Period
3rd Fiscal Period
4th Fiscal Period
5th Fiscal Period
6th Fiscal Period
7th Fiscal Period
9th Fiscal Period
10th Fiscal Period
8th Fiscal Period(period-ended(period-ended(period-ended(period-ended(period-ended(period-ended(period-ended(period-ended(period-ended
June 2018)
December 2018)
June 2019)
December 2019)
June 2020)
December 2020)
December 2021)
June 2022)
June 2021)
Note: The medium-term target shown above is CSIF’s target as of December 31, 2022, and does neither represent a guarantee nor promise that the target will be achieved nor when it will
be achieved. CSIF’s asset size expansion is dependent on financing environment, development schedule of solar power plants in the sponsor pipeline, acquisition opportunities ofprojects outside of the sponsor pipeline, and negotiations with sellers. Hence, there is a possibility that the asset size target may not be achieved.

80.00

第11期
（2022年12月）

11th Fiscal Period(period-ended
December 2022)

中期目標

Medium-termtarget (Note)

11

Portfolio Diversification
 Since the IPO, CSIF has reduced its concentration risk of projects under management by consistently
acquiring PV projects.
 The remaining FIT period is also diversified over a long period of time, aiming to build a portfolio that will
support stable cash flows in the future.


Changes in portfolio income diversification (panel output basis)

As of the end of 7th Fiscal
Period-ended Dec. 31, 2020

At IPO

As of the end of 11th Fiscal
Period-ended Dec. 31, 2022

29.0%

38.8%
3.5%

65.6%

5.4%

14.8%

22.2%
CS Mashiki-machi PP
CS Minami Shimabara-shi PP (east & west)
CS Hiji-machi PP



8.8%

CS Mashiki-machi PP
CS Daisen-cho PP (A & B)
CS Izu-shi PP

25.9%

CS Hiji-machi Dai-ni PP
CS Mashiki-machi PP
CS Daisen-cho PP (A & B)

Remaining FIT period of projects-under-management (panel output basis)

(MW)
100
80
60
40
20

0
2023

Projects reaching FIT expiration after 2034
¥40/kWh¥36/kWh¥32/kWh¥24/kWh¥21/kWh

6.0
0.9
2.3

49.0

53.4

FIT period: 11 years
1.2

6.3
11.9

2034

2035

3.0
1.7
2036

27.3
2037

12.9
2038

7.5
2039

2040

12

Unit Price Performance

In 2022, while both the Nikkei 225 and the TSE REIT Index have been on a downtrend due to recent interest
rate hikes in various countries, the TSE Listed Infrastructure Fund Index has been on an uptrend in responseto the announcement on September 28, 2022 that Takara Leben would launch a tender offer for TIF
investment units.



Although market conditions were largely volatile, such as rising energy prices triggered by Russia's invasionof Ukraine, interest rate hikes in various countries and a significant depreciation of the yen and appreciationof the dollar, CSIF unit prices remained stable almost in line with the TSE Listed Infrastructure Fund Index.
(Yen)

CSIF unit trading volume (right)

CSIF unit price (left)

TSE Listed Infrastructure Fund Index (left)

Nikkei 225 (left)(unit)TSE REIT Index (left)

135,000

4,000
3,500

130,000

3,000

125,000

2,500

120,000

2,000
115,000
1,500
110,000

1,000

105,000

500

100,000

02022/1
Source:Note：2022/22022/32022/42022/52022/62022/72022/82022/92022/10

Tokyo Stock Exchange, Inc.
Weighted average of listed infrastructure funds, Nikkei average, and TSE REIT Index is benchmarked to CSIF’s closing price as of January 4, 2022
and shows the rate of decline since January 4, 2022.

2022/112022/1213

Debt Profile (1) –LTV, Fixed-to-variable interest rate
ratio, DSCR and Credit Rating

 Employed conservative finance strategies to maintain sound LTV levels and a comfortable level ofborrowing capacity
 CSIF financial profile remains stable as fixed-to-variable interest rate ratio is 100% and DSCR is 2.29
 Submitted a shelf registration statement of investment corporation bonds with the maximum issue amountJPY 20 billion to secure funding facilities from the capital market
 Fixed-to-variable interest rate ratio and DSCR
Fixed-to-variable interest rate ratio (Note1)

As at end of December 2022

As at end of June 2022

100.0 ％

100.0 ％DSCR (Note2)

2.29

2.49

55.00%

51.58%

50.00%

40.00%

55.52%

53.74%
49.78%

45.00%

As at end of December 2022

As at end of June 2022

 Historical LTV

60.00%

51.75%
54.31%

50.81%

51.97%

49.91%

47.00%

44.67%

 Credit Rating
Rating Agency

Japan Credit Rating
Agency, Ltd.
Rating andInvestment
Information, Inc.

Subject to Rating

After Review

Outlook

Renewal Date

Long-term Issuer Rating

A

StableAugust 10, 2022

A-

August 10, 2022

A-

StableJuly 27, 2022st

The 1 Unsecured Investment Corporation Bond (only for Qualified
Institutional Investors)
Long-term Issuer Rating(Note1)“Fixed-to-variable interest rate ratio” refers to the ratio of fixed interest rate liabilities to total interest-bearing liabilities at that time. Variable interest rate liabilities that were converted to fixedinterest rate liabilities through interest rate swap agreements were deemed as fixed interest rate liabilities(Note2） “DSCR” stands for Debt Service Coverage Ratio and refers to the numerical value calculated by (operating income + depreciations costs + the increased portion of the reserves in our reserve fundfor repair fees ) ÷ (principal repayment + interest)“. DSCR is a multiple of the cash flow before repayments of existing borrowings versus repayment amount of existing borrowings. CSIF believes
that DSCR is a useful indicator that shows how much surplus cash flow is available for repaying existing borrowings.

14

Debt Profile (2) – Summary of Loans and Bonds(As of December 31, 2022)

 Loans
Type

LongtermEnding Balance(million yen)

Borrowing Date

Interest rate

31-Oct-2017

Base rate＋0.45%（Fixed to 0.845%）

6-Sep-2018

8-Mar-2021

Repayment Date

Abstract

11,507

31-Oct-2027
JCR Green Finance Evaluation

Unsecuredand nonguaranteed

Base rate＋0.45%（Fixed to 1.042%）

6,156

6-Sep-2028

Unsecuredand nonguaranteed

Base rate＋0.45%（Fixed to 0.8199%）

15,1248-Mar-2031
JCR Green Finance Evaluation

Unsecuredand nonguaranteed

Sub total of Loan

 Investment Corporation Bond
Name of Investment
Corporation Bond

Canadian Solar Infrastructure
Investment Corporation / The 1st
Unsecured Bond
Canadian Solar Infrastructure
Investment Corporation / The 1st
Unsecured Bond (Greenbond)

32,788Issue date

Interest Ending Balance
rate(million yen)

Redemption
date

Abstract

6-Nov-2019

0.71%

1,100

6-Nov-2024

Unsecuredand nonguaranteed

26-Jan-2021

0.80%

3,800

26-Jan-2026
JCR Green Bond Evaluation

Unsecuredand nonguaranteed

Sub total of Bond

4,900

Total

37,68815

Bank Formation■ Stable Bank Formation with 23 financial institutions including 3 Mega Banks, SBI Shinsei Bank andSumitomo Mitsui Trust Bank appointed as the Arrangers and Co-Arrangers
LenderBalance（JPY million）

Share
（%）

SBI Shinsei Bank, Limited

4,315

13.2%

Sumitomo Mitsui Banking Co.

3,655

11.1%

MUFG Bank, Ltd.

3,470

10.6%

The Nanto Bank, Ltd

2,711

8.3%

Mizuho Bank, Ltd.

2,298

7.0%

Asahi Shinkin Bank

1,868

5.7%

Hiroshima Bank, Ltd.

1,716

5.2%

Resona Bank, Limited

1,319

4.0%

The Oita Bank, Ltd.

1,282

3.9%

The Tottori Bank, Ltd.
Sumitomo Mitsui Trust Bank,
Limited.
The Chugoku Bank, Ltd.

1,245

3.8%

1,198

3.7%

1,198

3.7%

The 77 Bank, Ltd.

934

2.8%

The Ashikaga Bank, Ltd

793

2.4%

Orix Bank Corporation

732

2.2%

The Shonai Bank, Ltd.

659

2.0%

The Tochigi Bank, Ltd.

659

2.0%

The Bank of Saga, Ltd.

622

1.9%

The Senshu Ikeda Bank, Ltd.

622

1.9%

The Bank of Nagoya, Ltd.

622

1.9%

The Fukuho Bank, Ltd.

444

1.4%

The Bank of Fukuoka, Ltd.

266

0.8%

San ju San Bank, Ltd.

146

0.4%

SBI Shinsei Bank, Limited
13.2%

Sumitomo Mitsui
Banking Co.
11.1%
Sumitomo Mitsui
Trust Bank, Limited
3.7%

Total Debt
(32.7 billion yen)
MUFG Bank, Ltd.
10.6%

Mizuho Bank, Ltd.
7.0%

16

Impact of Curtailment and Installing
Online Curtailment Controller■ Impact of curtailment on CSIF

Number of days of curtailment
Number of times CSIF power
plants underwent curtailment
Estimated variable rent losses(thousand Yen)
Ratio of estimated variable
rent losses to projected rental
revenues

4th Fiscal Period(period-ended
Jun. 2019)

5th Fiscal Period(period-ended
Dec. 2019)

6th Fiscal Period(period-ended
Jun. 2020)

7th Fiscal Period(period-ended
Dec. 2020)

8th Fiscal Period(period-ended
Jun. 2021)

9th Fiscal Period(period-ended
Dec. 2021)

10th Fiscal Period(period-ended
Jun. 2022)

11h Fiscal Period(period-ended
Dec. 2022)

48 days

13 days

71 days

2 days90 days

22 days

41 days

7 days

117

21

249

1

206

96

136

24

32,545

3,750

58,13095

320,420

91,821

114,722

19,773

1.54%

0.17%

2.47%

0.00%

9.47%

2.46%

3.10%

0.53%

In the 11th FP, decrease in curtailment both in the numbers of days and times from the previous year, along with the completion of the installation of
online curtailment controllers at power plants in the Kyushu region, had a significant effect on reducing the estimated variable rent losses comparedto those in the 9th FP a year ago

While the impact of curtailment still exists to a certain extent, the impact on the operating status and distributions is
reduced due to various efforts by CSIF

■ Rationale behind installing online curtailment controller
Transition from all-day curtailment to hourly
curtailment with the introduction of online
curtailment controller, it is possible to limit
curtailment to peak hours only.

Hours subject
to curtailment

OutputOffline output curtailment(all-day curtailment)

OutputCurtailment limited
to peak hours only

Full day output curtailment
regardless of peak hours
7am 8am 9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm

Online output curtailment(hourly curtailment)Time

7am 8am 9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm

Time

CSIF expects to reduce the impact of curtailment on its revenue by installing a curtailment controller■ Promotion of installing curtailment controller by Kyushu Electric Power Transmission and Distribution
Co., Inc. and other distributors
Output curtailment had commenced in many grids across Japan; In addition to Kyushu Electric Power Transmission and Distribution Co. Inc.,
Chugoku Electric Power Transmission & Distribution Co. Inc. and YONDEN T & D as of April 2022, and Shikoku Electric Power Transmission
and Distribution Co. Inc., and Hokkaido Electric Power Network, Inc. as of May 2022. CSIF has been actively installing online curtailment
controllers for its projects-under-management in not only the Kyushu power grid, but for projects in other power grids in the Tohoku, Shikoku,
Hokkaido as well as the Chubu power grid which is expected to undergo online output curtailment in the future.

17

ESG Initiatives (UN PRI・ESG Report)
 Signatory to UN PRI and Formulation of the “Approach to the UN PRI” by CSAM

As of August 13, 2019, CSAM became the first Japanese asset manager of alisted infrastructure fund to be a signatory to the UN PRI (United Nations
supported Principles for Responsible Investment) to promote ESG(Environmental, Social and Governance) investments.



After signing the UN PRI, CSAM developed the " Approach to UN PRI" as its
basic ESG policy as of the end of December 2020, is disclosed on the CSIF's
website.

 ESG ReportSince its establishment, CSIF has been practicing ESG-conscious management
together with CSAM.

CSAM recognized that in our business operations, the issue of climate change
is an important management issue that can be a risk or an opportunity.



CSAM signed the UN Principles for Responsible Investment in August 2019.
CSIF endorsed the Climate-related Financial Disclosure Task Forcerecommendations in February 2022.
CSIF CSIF and CSAM published the ESG report in February 2023.



CSIF will select ESG subjects (materiality) of particular importance to CSIF andpromote efforts to achieve and further improve targets by setting KPIs andimplementing specific measures for materiality items through future activities.

18

ESG Initiatives (Granting of Tracking Information
・Power Sales with Premium) Granting of Tracking InformationIn response to the accelerating global decarbonization efforts, electricity consumers are increasingly looking for renewableenergy sources for their own electricity procurement. CSIF has started to provide consumer with tracking information(renewable energy power plant information to be granted to FIT Non-Fossil Certificates (Note)) for its CS Daisen-choPower Plant (A), CS Daisen-cho Power Plant (B）, and CS Marumori-machi Power Plant.

This trial can respond to the growing needs of electricity consumers for renewable energy, such as RE100 (Renewable
Energy 100%), an international initiative that aims to procure 100% of the energy consumed by business activities fromrenewable energy sources.

(Note) FIT Non-Fossil Certificates are certificates that represent the renewable energy value of electricity purchased on a feed-in tariff under the FIT system and traded on the non-fuelvalue trading market of the Japan Electric Power Exchange (hereinafter referred to as "JPEX").

 Power sales with premium to renewable energy users through a Wholesale Electricity Supply
Agreement with Zero Watt Power Inc.


By executing the wholesale electricity supply agreement with Zero Watt Power Inc for CSIF’s power plants listed below,
CSIF contributes to supply FIT electricity to consumers.



CSIF has also begun purchasing clean electricity for power plant consumption. Clean electricity derived from renewableenergy sources and FIT electricity to general households and companies that demand clean power from renewable energy
sources, which will contribute to the diffusion of renewable energy. We believe that this will contribute to the spread ofrenewable energy and also to the generation of additional rental revenues.
Power Plant

Counter Party

CS Izu-shi PP
CS Mashiki-machi PP
CS Hiji-machi Dai-ni PP
CS Ogawara-machi PP

Zero Watt Power

Premium Wholesale

Purchase of clean energy

From February 2021

From March 2021

From December 2021

From June 2021

From July 2021

From June 2021

From May 2021

From July 2021

19

ESG Initiatives（TCFD・SFDR）
 The first listed infrastructure fund to conduct disclosures under TCFD guidelines

Task Force on Climate-related Financial Disclosures (TCFD) was established by the
Financial Stability Board (FSB) to promote transparency on climate-related information
disclosures and discuss implementation methods for financial institutions.



On February 14, 2022, CSIF conducted climate-related disclosures in accordance withthe guidelines of the “TCFD Recommendations” released in June 2017 where it isrecommended to categorize disclosures by core elements; “governance”, “strategy”, “riskmanagement” and “metrics and targets”.

 Adherence to EU SFDR Article 8 disclosure requirementsIn order to prevent greenwashing (falsely claiming the sustainability of a particular product) and to create a more transparent
playing field for ESG investors in their investment decision-making, EU SFDR was created for the purpose of enhancing
transparency of sustainable investment.

Disclosure covers all information relevant to policies on sustainability risk, sustainability of financial products, and ESG factors.



CSIF is scheduled to conduct SFDR Article 8 disclosure requirements of pre-defined ESG (environmental, social, governance)
factors.
Article 6

Article 8

Article 9

All products not covered by
Article 8 or Article 9

Products promoting
environmental or social
characteristics

Products designed tosustainable investments or
reducing carbon emissions

CSIF

20

ESG Initiatives (Green Finance)
 CSIF devised a new Green Finance Framework which obtained a Green1(F) assessment from
JCR, the highest assessment rating as of May 11, 2020 and the rating is maintained.
JCR, SBI Shinsei
Green Loan
Assessment

Stakeholders

Reporting onfund allocation
andenvironmental
improvement

Anticipatedacquisitions

1

IPO acquisitions

2

Acquisitions after IPO

3

Anticipatedborrowings(Green loan)

JCR
SBI Shinsei Bank

Borrowings(Green loan)

Financial institutions

Investment
corporation
bonds (Green bond)

Bond investors

Green1(F)12(highest JCR evaluation)

CSIF obtained a Green1 (the highest rating) assessment from JCR and a SBI Shinsei Green Loan Assessment from SBI Shinsei Bank, Limited,which is one of CSIF’s arranger banks, for the borrowings of 17.0 billion yen allocated towards acquisitions during the 8th Fiscal Period (acquired on
March 8, 2021) . Also, after JCR’s review, the borrowings continued to be assessed as Green1 as of June 30, 2022.

The borrowings amounting to 15.7 billion yen which was allocated towards the funds for acquiring the acquisitions for the IPO obtained a Green1 (thehighest rating) assessment by JCR as of November 22, 2017, based on JCR’s evaluation of the use of proceeds and CSIF’s
management/operation/transparency. Also, after JCR’s review, the borrowings continued to be assessed as Green1 as of June 30, 2022.

3 As of January 26, 2021, CSIF issued a 5-year Green Bond of 3.8 billion yen, which was given JCR Green1 assessment and the proceeds will be

used for the repayment of borrowings. Also, after JCR’s review, the Investment corporation bonds continued to be assessed as Green1 as of June 30,
2022.

21

Aim for Further Diffusion of Renewable Energy drawing
on Positive Stance of the Japanese Government According to the 6th Basic Energy Plan approved by the Cabinet in October 2021, the government plans to set the shareof renewable energy as the top source of energy. Also, it seeks to double the ratio of renewable energy (compared to
FY2019 actuals, 18%) by FY2030; somewhere between 36%~38% of the total energy mix.
 Solar power is expected to compose 14%~16% of the total renewable energy mix. Moreover, installed capacity of solar
power by FY2030 is expected to significantly larger than other sources.
Ratio of renewables to total energy mix

100%

80%

Expected installed capacity by renewable energy
sourceRenewable energy

Nuclear

LNG

Coal-fired

Oil thermal, etc.

Hydrogen・Ammonia

7%

3%
26%

（GW）
140

1%
2%

120

19%

32%

Breakdown of renewables
20%

60%

40%

20~22%
Hydraulic11%

20~22%
20%

6%
18%

0%

FY20192019年度Actual実績

36~38%
22~24%
FY2030 Target
FY2030 Target
2030年度政府目標
2030年度政府目標(2015 forecast) （第6次エネルギー基本計画)(6th Basic Energy Plan)（平成27年見通し）

Solar
14~16%

Wind
5%
Geothermal
1%

100
80

Biomass
5%

27%
37%

117.6

Anticipated installed generation capacity until FY2030
2030年度までの発電導入量（見込み）(optimistic estimate)（野心的水準）（野心的水準）Installed generation capacity as of March 20202020年3月時点での発電導入量（実績）(actual)61.8

Installed capacity of solar power is
expected to exceed that of other energy
sources

60

50.7

40
55.8
20

17.9
5.7

0
太陽光
Solar

陸上風力
洋上風力
Wind
power Windpower
(On shore) (Off shore)

8

1.5
地熱
Geothermal

水力
Hydraulic

バイオマス
Biomass

Source: Compiled by the asset manager based on documents by the Strategic Policy Committee of the METI Agency for Natural Resources and Energy Advisory Committee for Natural Resources and Energy

22

Main Points of the Revised Renewable Energy Act
 Discussions on Power Producer-side Wheeling ChargeConcerning the regulation on wheeling charges where power producers (including renewable energy producers)
must bear 10% of consignment charges which the retailer previously paid the full cost, a proposal to exempt
wheeling charges on FIT/FIP-certified projects until after the FIT period expires has been submitted.
• In addition to levy methods and detailed calculation methods, discussions on wheeling charges on
existing FIT-certified projects were held. However, the government ultimately decided to reach adecision during FY2022 with the common understanding that the effective date will be postponed
from FY2023 to FY2024.

Summary ofthe details ofWheeling Charge• At the “Mass Renewable Energy Introduction / Next Generation Energy Network Committee” held in
Nov 2022, the members decided that careful discussions on how to regulate FIT energy sources
without interrupting the growth of renewable energy. Considering the burden on the Japanesecitizens a motion to either allow installment payments or completely exempt wheeling charges on
existing FIT/FIP-certified projects has been submitted.
• Finally, the aforementioned committee decided that wheeling charges are exempt for existing
FIT/FIP projects during their respective FIT periods. After receiving public comments on this new
regulation, finite details will be decided by March 2023 and is scheduled to be effective as of
FY2024.

Scheme of Wheeling Charge (All of CSIF's assets are already FIT-certified projects)
Power
Producers

Wheeling
Charge10%

Gridoperators

Consignment
ChargeUtilities bill

Retailers

End Users

90%

Wheeling charge shall be added to the wholesale price.

23

3. Management Policy

24

11th, 12 th and 13 th FP Business Forecast
 Business Forecast
Statement of Income(million yen)

12th Fiscal Period(ending Jun 2023)

13th Fiscal Period(ending Dec 2023)

14th Fiscal Period(ending Jun 2024)

Operating revenues

3,690

3,707

3,639

Operating income

1,352

1,370

1,330

Income before income taxes

1,149

1,169

1,136

Net income

1,148

1,168

1,135

DPU (incl. distributions in excess of earnings)

3,750 yen

3,750 yen

3,750 yen

DPU (excl. distributions in excess of earnings)

2,969 yen

3,022 yen

2,935 yen

781 yen

728 yen

815 yenPer unit distributions in excess of earnings

CSIF expects to distribute JPY 3,750 per unit for the 12th to 14th FP with the aim ofmaintaining a stable and sustainable distribution payout(Note 1) Figures are rounded down to the nearest million yen.
(Note 2) Above forecasts are based on earnings summary dated February 15, 2023, and is subject to change due to factors including
without limitation, acquisition or sale of renewable energy projects, changes in infrastructure markets, fluctuation in interest rates andother changes in circumstances surrounding CSIF. Forecasts do not guarantee any dividend amounts.

25

Historical and Forecasted Dividend
 CSIF has maintained stable distributions ever since it realized a distribution of JPY3,600 per unit forthe 3rd FP
 DPU forecast for the 12th to 14th FP is JPY 3,750 and CSIF aims to achieve a stable and sustainabledistribution payout by utilizing distributions in excess of earnings

（yen）

4,500
4,000
3,500

3,600

3,650

577

3,000
2,500

3,650

3,700

3,700

708

601

1,340

1,817

3,700

3,750

924

848

2,000

0

3,750

3,750

3,750

3,750

612

781

728

815

3,138

2,969

3,022

2,935

11th FP

12th FP

13th FP

14th FP

3,903
3,073

1,500
1,000

3,903

2,992

3,099

6th FP

7th FP

2,310

1,783

2,776

2,902

8th FP

9th FP

500
0

3rd FP

4th FP

5th FP

10th FP(Forecast) (Forecast) (Forecast)
DPU (excl. distributions in excess of earnings)(Note)Per unit distributions in excess of earnings

Figures for the 12th to 14th Fiscal Period are forecasts and are subject to change. They do not represent guaranteed distribution amounts.

26

External Growth Strategy（Pipeline）(Pipeline including projects owned by JGIF and Bridge Fund, the numbers are as of December 31, 2022)

 Target to achieve ¥100Bn in asset size early by mainly acquiring assets from abundant sponsor pipeline

Operational and underconstruction

15 projects, 217.7MW

Under development

Total pipeline

12 projects, 149.8MW

27 projects, 367.5MW

 Operational start year and status ofpipeline assets

 Pipeline snapshot
By size (per asset)
50MW -

2
7
7

10MW - 50MW
5MW - 10MW

8

3

2MW - 5MW
- 2MW

Source: Compiled by the Asset Manager based on disclosures by Canadian Solar Projects K.K.

（MW）

450
400
350
300
250
200
150
100
50
0

Operational

Under construction

Under development
367.5MWOperational

2023

2024

2025

2026-

Total

27

Abundant Pipeline Centered on Sponsor-Developed
Assets Assisting CSIF’s Growth● Operational● Under construction● Under development

Pink box for Bridge Fundprojects

Light blue box for
JGIF’s projects

Lower row in each box ; size (MW)/ FIT
price in JPY/ anticipated COD

CS Hokkaido Bihoro PP
2.5 MW/18/2021

CS Gunma Takasaki KG PP
24.5 MW/14.49/2022
CS Tottori Daisen Dai-ni PP
1.9 MW/11.49/2024
CS Shimane Hamada PP
1.9 MW/21/2022
CS Fukuyama-shi PP
3.4 MW/40/2020（as of December 31, 2022）

CS Aomori Maita PP
3.0 MW/10.89/2024

CS Gunma CC PP
21.0 MW/11.99/2025

CS Miyagi Kami-machi PP
80.0 MW/10.76/2026

CS Gunma Minakami Dai-ni
PP 2.2 MW/18/2023

CS Shichikashuku-machi PP
9.2 MW/36/2020

CS Nagano Omachi PP
3.0 MW/10.14/2025

CS Fukushima Sabara PP
3.0 MW/10.79/2024

CS Hiroshima Suzuhari PP
17.8 MW/17.97/2022

CS Azuma Kofuji PP
100.0 MW/36/2022

CS Yamaguchi Hofu PP
8.0 MW/14.25/2023

CS Tochigi Kitsuregawa PP
1.2 MW/32/2023

CS Miyako-machi Saigawa PP
13.0 MW/36/2021

CS Okayama Shinyubara PP
29.9 MW/13.47/2025

CS Ibaraki Kurusu PP
11.3 MW/24/2022

CS Fukuoka Tagawa PP
0.7 MW/18/2023

CS Yamaguchi Aiofutajima
1.2 MW/18/2022

CS Ibaraki Takamihara PP
1.2 MW/11.99/2024

CS Kumamoto Mashiki Dai-ni
PP 1.2 MW/18/2023

CS Kama-shi PP
2.2 MW/36/2017

CS Ibaraki Kasama PP
13.5 MW/32/2021

CS Oita Munechika PP
8.1 MW/32/2023

CS Shizuoka Gotenba PP
2.0 MW/27/2023

Source: Compiled by the Asset Manager based on disclosures by Canadian Solar Projects K.K.

28

Appendix

29

Canadian Solar Group’s Global Operations（1） Key achievements of Canadian Solar Group
Share of shipping
PV modules

Bankability

2021 Global share2020 #1 bankable

Top 5

Source: Pveye June 2022,
Vis On Press Co.,Ltd.

solar panel manufacturer(Solar module segment)
Source: Bloomberg New Energy Finance2020 Module Bankability Survey

Shipped solar panels

Solar power plants underdevelopment or construction

Over 82GW

intotal(as of September 30, 2022)

Approx. 25GW

(panel output basis as of
September 30, 2022)

 Canadian Solar Group’s history
 Founded in Ontario, Canada in 2001
 Listed on NASDAQ (CSIQ) in 2006
 Entered the Japan market in 2009 and establisheda proven track record for shipping PV modules

Over 82 GW
solar modules shipped

Module capacity 32 GW
Cell capacity 19.8 GW

25 GW project pipeline
40 GWh energy project pipelineof CSIQ

Active buying customers
in more than 160
countries

Subsidiaries in 23
countries & regions on 6
continents

20 manufacturing facilities
in Asia & Americas Over 13,500 employees as of September 2022
 More than 82 GW of cumulative solar panels
shipped30

Canadian Solar Group’s Global Operations（2） Canadian Solar Group’s Global Operations
Module and System solutions (MSS) segment：18 countries
Energy segment ：18 countries
Solar panel factory：4 countries (17 factories)(As of September 30, 2022)
12

1

15
13

1
7
2

2

12

10

8

18

9
11

18

16
2

2
2

13

3

15

2

21

5
6
4
7
3 1

17

20
22

5

3

4

2 offices

6

Chile

14

1 office24
23

6

1 Canada

19

2

11

Italy

24

14

1 office

16

China

16 offices

21

Vietnam

1 office
1 office

2U.S.

3 offices7

U.K.

1 office

12

Netherlands

1 office

17

Taiwan1 office

22 Malaysia

3

Mexico1 office

8

Germany

1 office

13

UAE

2 offices

18

Korea

1 office

23

Singapore

1 office

4

Brazil1 office

9

Poland1 office

14 South Africa

1 office

19

Japan

4 offices24

Australia

2 offices

5 Columbia

1 office

10

Spain

1 office15

1 office

20

Thailand1 office

India

31

Value Creation using the Sponsor Group’s VerticallyIntegrated Model (Manufacturer, Developer, AM・O&M)

32

Organizational Structure Identical structure as a typical J-REIT Our revenue is derived from rent income of solar energy projects
Canadian Solar Asset Management K.K.
Engaged in asset management in Canadian Solar
Infrastructure Fund, Inc.
 Established in June 2016

Asset
Management
Agreement

Canadian Solar Projects K.K. (Sponsor)(Sponsor / Operator)
 Engaged in construction and operation of solar energy
facilities
 Established in May 2014

Canadian Solar O&M Japan K.K.
Provides O&M services to solar energy facilities including
our currently-owned projects
 Established in June 2016


Asset Manager
SponsorSupportAgreement

EquityInterest

Sales of PV modules for use in residential and industrial
solar power systems
 Established in June 2009

Investment
Corporation(Fund)

Investors
EquityLoan
Agreements

Sponsor /Operator
O&M Service
Agreement

Lenders

Solar Energy
Projects
Lease /
Purchase
Agreements

O&M

Landowners

Lease / Operation
Agreement

Canadian Solar Japan K.K.


Distributions

Asset Management
Service Agreements

LesseeOperator
SPC, etc.

Utilities
PPAs /
Interconnection
Agreements

33

Asset List– Operational Result for 11th FP(in thousand yen)No.

Project name

Basic Rent

Variable Rent andOther Revenues

Rental Expenses(incl. depreciation
expenses)

Depreciation
ExpensesProfits andlosses from therental business

S-01

CS Shibushi-shi Power Plant

18,843

7,052

13,552

9,539

12,341

S-02

CS Isa-shi Power Plant

13,954

6,359

11,776

7,925

8,537

S-03

CS Kasama-shi Power Plant

28,94912,24821,35014,483

19,846

S-04

CS Isa-shi Dai-ni Power Plant

28,815

11,48324,03016,534

16,267S-05

CS Yusui-cho Power Plant

23,117

9,785

21,545

14,36011,356

S-06

CS Isa-shi Dai-san Power Plant

34,318

14,68729,307

19,971

19,697

S-07

CS Kasama-shi Dai-ni Power Plant

28,57012,34526,092

17,604

14,821S-08

CS Hiji-machi Power Plant

36,91018,13832,094

22,166

22,954

S-09

CS Ashikita-machi Power Plant

36,547

13,95629,70920,306

20,794

S-10

CS Minamishimabara-shi Power Plant(East & West)64,52327,753

55,95135,40436,324

S-11

CS Minano-machi Power Plant

30,223

6,551

23,528

16,211

13,245

S-12

CS Kannami-cho Power Plant

18,177

6,661

16,144

9,671

8,692

S-13

CS Mashiki-machi Power Plant

677,855

294,168

483,338

338,389

488,684

S-14

CS Koriyama-shi Power Plant

7,465

3,279

6,000

4,191

4,744

S-15

CS Tsuyama-shi Power Plant

21,575

12,106

19,371

13,16014,30934

Asset List– Operational Result for 11th FP(in thousand yen)

Variable Rent andOther Revenues

Rental Expenses(incl. depreciation
expenses)

25,225

17,874

24,951

14,52618,147

379,639

131,511

325,320

214,573

185,829

CS Takayama-shi Power Plant

9,573

1,512

9,880

5,034

1,205

S-19

CS Misato-machi Power Plant

12,8085,228

11,826

7,603

6,210

S-20

CS Marumori-machi Power Plant

27,903

11,45029,946

17,059

9,406

S-21

CS Izu-shi Power Plant

140,541

73,271

135,848

87,83577,963

S-22

CS Ishikari Shinshinotsu-mura Power
Plant

20,552

12,92423,92913,015

9,546

S-23

CS Osaki-shi Kejonuma Power Plant

6,254

2,887

5,930

3,600

3,209

S-24

CS Hiji-machi Dai-ni Power Plant

824,936

367,392

650,680

475,568

541,647

S-25

CS Ogawara-machi Power Plant

86,03931,191

82,512

54,412

34,7172,603,324

1,111,826

2,114,647

1,453,152

1,600,502

No.

Project name

S-16

CS Ena-shi Power Plant

S-17

CS Daisen-cho Power Plant(A)(B)

S-18

Total

Basic Rent

Depreciation
ExpensesProfits and losses
from the rental
business

35

ESG Initiatives（Environment）
 In consideration of the environment, CSIF and the Canadian Solar Group contributes to theutilization of renewable energy through renewable energy investments.
 Incorporate measures to reduce environmental impact from manufacturing solar panels


The Canadian Solar Group is focused on reducing the environmental impact from solar panel manufacturing processes
such as greenhouse gases and industrial waste water and have achieved the following reductions in our environmental
impact from 2017 to 2021.
Reduction of greenhouse gas
emissions ( / kW)

Reduction of industrial water
consumption ( / MW)2017
Approx.

2017

156 ton-17%

2021
Approx.

130 tonApprox.

2,249 ton

2021

-53%

Approx.

1,059 ton

Source ： 「Sustainability Report 2021」 (Canadian Solar Inc.)

 Environmentally-conscious development and operation of CS Daisen-cho Power Plant

Given that Mount Daisen located near CS Daisen-cho Power Plant owned by CSIF, is in close proximity to an
ecosystem rich with forests, plants and wild birds, the Sponsor made efforts to refrain from using chain-saws whendeveloping the project to avoid damaging the habitat of rare species of indigenous falcons as well as painting the fence
around the site using camouflage colors.

36

ESG Initiatives（Social）
 Canadian Solar Group's relationship with local communities at Hiji-machiCanadian Solar Asset Management Inc. is sponsoring the Xavier‘s Way Walking in Hiji-machi, where CS Hijimachi Power Plant and CS Hiji-machi Dai-Ni Power Plant are located. In 2022, CSAM employees
participated in this event, which is a walk along a historic trail that Francisco Xavier is said to have passed
through.

 Canadian Solar Group’s relationship with the local community around CS Daisen-cho
The Sponsor constructed the Daisen Canadian Garden and donated it to the Daisen-cho Town Government incommemoration of the completion of CS Daisen-cho Power Plant, now owned by the CSIF after development, andas part of its contribution to local communities in an effort to create harmony between nature and the large-scalesolar power plant. In addition, it repaired the Hima Jinja Shrine in the same town and donated an incense holder
made of white granite to the Shimpukuji Temple.

 Donation to Marumori-machi, Igu-gun, Miyagi prefecture where CS Marumori-machi is located

The sponsor and CSAM offered donations to the Marumori-machi Town Government. The town was severely
hit by Typhoon Hagibis in October 2019.

37

ESG Initiatives (Governance) Aligning the interest of unitholders with that of the SponsorWe aim to increase unitholders’ value by aligning the interest of unitholders with that of the sponsor.

Number of units held by the sponsor and holding ratio after the offering: 56,620 units （14.64%）
 Decision-making Procedures for Asset Purchase and Transfer Transactions with Related Parties


The Asset Manager has implemented measures in the Regulations for Related-Party Transactions to limit adverse effects inconnection with transactions with related parties such as Canadian Solar Group companies where conflicts of interest are highly likely
to emerge
Decision-Making Structure Concerning Transactions with Related Parties in connection with Asset Acquisitions and Transfers

Transactions with related parties(such transactions worth 5 billion yen or more)

Transactions with related parties(other transactions)

Drafting of asset acquisition and other plans by the
Acquisition Department

Drafting of asset acquisition and other plans by the
Acquisition Department

Approval by the Chief Compliance Officer(confirmation of the presence or absence of complianceproblems including the state of compliance with laws and
Send proposal backregulations)
Deliberation and resolution by the Compliance
Committee
Deliberation and resolution by theInvestment Management Committee
Deliberation and resolution by the Board of Directors of
the Asset Manager
Approval by the Board of Directors of the Investment
Corporation and Agreement by the Investment
Corporation

Rejection andsend proposal backRejection andsend proposal backRejection andsend proposal backRejection, disagreement
and send proposal backApproval by the Chief Compliance Officer(confirmation of the presence or absence of complianceproblems including the state of compliance with laws and
Send proposal backregulations)
Deliberation and resolution by the Compliance
Committee
Deliberation and resolution by theInvestment Management Committee
Approval by the Board of Directors of the Investment
Corporation and Agreement by the Investment
Corporation

Rejection andsend proposal backRejection andsend proposal backRejection, disagreement andsend proposal backReport to the Board of Directors of the Asset Manager

38

Status of Unitholders
 Unitholding (as at period-ended December 2022)
 By unitholding amount# ofInvestment
units:
386,656

 By unitholders■Individuals / others■Financial institutions

191,919（49.64%）(incl. financial instruments firms)

57,595（14.90%）■Domestic Corporates

81,615（21.11%）■Foreign entities & individuals 55,527（14.36%）

Name

# of
Unitholders:
18,184■Individuals / others■ Financial institutions

17,706（97.37%）■ Domestic Corporates

297 （ 1.63%）(incl. financial instruments firms)■ Foreign entities & individuals

Number of investment units
held (units)

50 （ 0.27%）
131 （ 0.72%）

Unitholding ratio to total
issued units (％)

1

Canadian Solar Projects K.K.

56,62014.64%

2

THE BANK OF NEW YORK MELLON SA/NV 10

10,8392.80%

3THE BANK OF NEW YORK

10,475

2.71%

4

The Bank of Fukuoka, Ltd.

7,830

2.03%

5

SSBTC CLIENT ONMIBUS ACCOUNT

7,387

1.91%

6

JP MORGAN CHASE BANK 385650

6,226

1.61%

7

The Rokinren Bank

6,223

1.61%

8

Custody Bank of Japan, Ltd. (Trust Account)

5,147

1.33%

9

The Master Trust Bank of Japan, Ltd.

4,490

1.16%

4,087

1.06%

119,32430.86%

10 JP MORGAN CHASE BANK 380646
Total(Note): Unitholding ratio is rounded down to the nearest hundredth.

39Balance Sheet for 11th FP
 11th Fiscal Period (ended December 2022)
 Assets(in thousands of yen)

Current assets
Cash and bank deposit

5,271,544

Operating accounts receivable

798,973

Accounts receivable
Prepaid expenses

85,754

Consumption tax receivable
Other current assets
Total current assets

284,5076,440,782

Fixed assets

Accumulated depreciation
Total structures (net)
Machinery and equipment

1,056,877△193,153
863,724

Accumulated depreciation

42,480,349△8,203,513

Total machinery and equipment (net)34,276,835

Tools, equipment and supplies
Accumulated depreciation
Total tools, equipment and supplies (net)Land
Construction in progress
Structures in trust
Accumulated depreciation

591,663△114,667
476,996
4,505,944
6,590,138△441,608

Total structures in trust (net)

6,148,530

Machinery and equipment in trust
Accumulated depreciation

20,291,246△1,549,535

Total machinery and equipment in trust (net)18,741,711

Tools, equipment and supplies in trust
Accumulated depreciation

94,264△7,036

Total tools, equipment and supplies in trust (net)87,228Land in trust

4,769,905

Total property and equipment

69,870,876

Intangible assets
Leasehold rights
SoftwareTotal intangible assets

Total fixed assets
Deferred assets
Investment corporation bond issuance cost
Total deferred assets
Total assets

Property and equipment
Structures

Investments and other assets
Long-term prepaid expenses
Capital investments
Deferred tax asset
Long-term deposits
Guarantee deposits
Total investments and other assets

1,156,923
2,226
1,159,150

 Liabilities and Net Assets

481,80210
15
15,60037,790535,21771,565,244
14,921
14,921
78,020,948(in thousands of yen)

Current liabilities
87,324

Operating accounts payable
Long-term borrowings to be repaid within 1 year
Accounts payable
Accrued expenses
Income taxes payable
Consumption taxes payable
Deposits received
Total current liabilities
Fixed liabilities

2,275,477
161,541
158,492
914
76,7731,265
2,761,788

Investment corporation bondLong-term borrowings
Total fixed liabilities
Total liabilities
Unitholders’ equity

30,512,844
35,412,844
38,174,632

Unitholders’ capital
Amount deducted from Unitholders’ capital
Unitholders’ capital (net)
Surplus
Unappropriated retained earnings(accumulated deficit)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets

4,900,000

40,631,004△1,998,255
38,632,749
1,213,566
1,213,566
39,846,315
39,846,315
78,020,948

40

Statement of Income for 11th FP
 11th Fiscal Period (ended December 2022)(in thousands of yen)

Operating revenues
Rental revenues

3,715,150

Total operating revenue

3,715,150

Operating expenses
Rental expenses of renewable energy projects

2,114,647

Asset management fee

115,772

Administrative service fees

27,251

Director’s compensation

2,400

Tax and dues

164

Other operating expenses

71,609Total operating expenses

2,331,847

Operating profit
Non-operating income
Interest income
Insurance proceeds

1,383,301
29
39,287

Interest on refund-

Other non-operating income
Total non-operating income

202

Non-operating expenses

39,519Interest expenses

148,732

Interest expenses on investment corporation bond

19,262

Amortization of investment corporation bond issuance
expenses

2,779

Borrowing-related expenses

37,730Investment unit issuance expenses
Loss on retirement of fixed assets
Total non-operating expenses

208,505

Ordinary income

1,214,315

Income before income taxes

1,214,315

Income taxes
Income tax adjustments
Total income taxes

918
-2
915

Net income

1, 213,400

Profits brought forward
Unappropriated retained earnings(accumulated deficit)

1,213,566

165

41

Portfolio Assets (1)S-01 CS Shibushi-shi
Power Plant 1.2MW

S-02 CS Isa-shi
Power Plant 0.9MW

S-03 CS Kasama-shi
Power Plant 2.1MW

S-04 CS Isa-shi Dai-niPower Plant 2.0MW

S-05 CS Yusui-cho
Power Plant 1.7MW

S-06 CS Isa-shi Dai-sanPower Plant 2.2MW

S-07 CS Kasama-shi Dai-niPower Plant 2.1MW

S-08 CS Hiji-machi
Power Plant 2.6MW

S-09 CS Ashikita-machi
Power Plant 2.3MW

S-10 CS Minami Shimabara-shi
Power Plant(East & West) 3.9MW

S-11 CS Minano-machi
Power Plant 2.4MW

S-12 CS Kannami-cho
Power Plant 1.3MW

S-13 CS Mashiki-machi
Power Plant 47.7MW

S-14 CS Koriyama-shi
Power Plant 0.6MW

S-15 CS Tsuyama-shi
Power Plant 2.0MW

42

Portfolio Assets (2)S-16 CS Ena-shi
Power Plant 2.1MW

S-17 CS Daisen-choPower Plant (A&B) 27.3MW

S-18 CS Takayama-shi
Power Plant 1.0MW

S-19 CS Misato-machi
Power Plant 1.1MW

S-20 CS Marumori-machi
Power Plant 2.2MW

S-21 CS Izu-shi
Power Plant 10.7MW

S-22 CS Ishikari
Shinshinotsu-muraPower Plant 2.3MW

S-23 CS Osaki-shi Kejonuma
Power Plant 0.9MW

S-24 CS Hiji-machi Dai-niPower Plant 53.4MW

S-25 CS Ogawara-machi
Power Plant 7.5MW

43

Leasing Structure based on Basic and Valuable rent
 Calculation method of basic rent and variable rent in anticipated projects to be acquired
Basic rentMonthly projected energy output (P50) ×(100－Y)% × 70% × FIT purchase price

Variable rent(Monthly actual energy output × (100－Y)% × FIT purchase price) － Basic rent

 Even if actual energy output falls below 70% of projected energy output (P50), CSIF may still receive basic rent from lessee under certain
conditions
 If actual energy output exceeds 70% of projected energy output (P50), possible to obtain variable rent

 Diagram of rent structure
Projected revenue from sales of electricity(before deducting lessee’s operating costs andoperator compensation)
×Y％

Projected energy output (P50)
×FIT purchase price

Rental income of Canadian Solar
Infrastructure Fund, Inc.

Projected energy output (P50)
×FIT purchase price×(100-Y)%
Projected energy output (P50)
×FIT purchase price × X%

Variable rent
×Y％

Projected energy output (P50)
×FIT purchase price × X%
×(100-Y)%

Basic rent

Projected energy
output (P50)×X%

Projected energy
output (P50)

Note-1: Projected energy output (P50) is monthly predicted solar
energy output in lease term as described in technical reportNote-2: Y is percentage based on lessee’s operation cost and operator
compensation
Note-3: Negative variable rent is regarded as zero

Actual energy output

44

Stable and Balanced Cash Flow Distribution Policy
Supported by FIT System
 Cash distributions to CSIF’s unitholders for each fiscal period are calculated by multiplying the residual
free cash flow (“NCF”), which refers to free cash flow (“FCF”) minus debt interest payments, by a fixedratio, which is determined by CSIF for each fiscal period.
 Image of distribution in excess of earnings
Expenses ofleasingbusiness
Capitalexpenditure
Debt interest
Total rental
revenues

FCF made by
renewable energy facilities

Use forreinvestment

Debt
repayment
Retainedearnings
Residual FCF(NCF)

Revenue

Expenses

Residual FCF
×a fixed ratio

Cashdistribution

Distribution

Up to 60%of depreciation

Depreciation

Distribution inexcess of
earnings
Distribution
from profit

Net income

Breakdown

P/L

Note: The chart above is presented solely to facilitate a general understanding of the mechanism for cash distributions, and does not represent the ratio of our rental revenues or cash distributions inexcess of retained earnings. CSIF may decide not to make any amount of cash distributions in excess of retained earnings for a particular fiscal period, based on a consideration of factors such as
economic or renewable energy market conditions or financial conditions, among other factors, after taking into account of our financial situation and alternative uses of cash, such as the execution of
repair plans and capital expenditures, the repayment of borrowings and project acquisition opportunities. We may, in place of making cash distributions in excess of retained earnings, decide toacquire our own units.

45

Characteristics of PV Plant Revenue
 Forecastability of earning stability on a long-term basis
 FIT price and FIT period of our PV plants are binding in accordance with the Feed-in-Tariff system. Moreover, given that ourassets-under-management are set up so that we can capture basic rent from the lessee, we assume that any decline in rent
income won’t exceed a certain limit.
 Given that expenses on depreciable assets are largely fixed, earnings forecasts can be realistically projected for the long-term.

 Dynamics of PV plant revenue during FIT period
AmountOperatingrevenues

Operating revenues generally decrease gradually over the
medium to long term due to expected degradation of PV
modules.

Operatingexpenses

Depreciable asset tax, a large expense component,
decreases due to a straight-line-based depreciation, so
operating expenses generally decrease gradually over the
medium to long term, under the assumption that expenses
other than taxes on depreciable assets be largely fixed(including assumed regular maintenance costs).

Operating revenues
Operating expenses

Net income
Non-operating expenses

Time

Amortization payments of loan principal and interest rates
that are partially fixed generally cause non-operating
Non-operating expenses to decrease gradually over the medium to longexpensesterm given typical amortization schedules, as thesepayments are the primary component of nonoperating
expenses.

Note: The chart above is presented solely to facilitate a general understanding of the theory management considers in approaching the business of solar energy projects during the FIT period term. The
chart assumes the continuous operations of solar energy projects during the FIT period term under normalized conditions, with no extraordinary events, including additional acquisitions or dispositionsof projects, or expenses or changes in the operating or regulatory environment. Actual results may vary significantly depending on the particular features and circumstances of infrastructure funds, aswell as unexpected events or changes or the realization of various risks. You should not rely on this model to predict the outcome of our operating revenues, operating expenses, non-operating
expenses or net income.

46

Overview of Output Curtailment
 In order for electric power companies in each region to stabilize the supply of electricity, each company curtails the output of power generators to control
supply in the event that the supply of electricity in its grid largely exceeds demand.
 Output curtailment of each energy source is implemented according to the priority electric supply dispatch rule. According to this rule, solar energy output iscurtailed after thermal and biomass energy generation, pumped-storage hydroelectric energy generation, charging of storage batteries for adjusting supply
and demand, and electricity is supplied outside the area through interconnection.
 Furthermore, output curtailment is equally distributed by introducing a rule that sets the priority of output curtailment by group. By reducing the burden of
output curtailment on all solar power plants, it is expected that output curtailment will be equally distributed even if solar power plants installed with curtailment
controllers will be curtailed less than solar power plants without curtailment controllers.

 Generic output curtailment scenario

 Rules on output curtailment~Priority electric supply dispatch rule~

Curtail thermal, pumped-storage hydroelectric energy generation charging of

1 storage batteries for adjusting supply and demand

Volume ofgenerated electricity

2 Supply electricity outside the area through interconnection

Curtailment of solar
and wind generators

3 Curtailment of biomass energy generation
4 Supply curtailment of local biomass energy generation
Curtail natural variable renewable energy generation

5 (solar and wind power)

Instruction provided by Organization for Cross-regional Coordination ofElectricity
demand6 Transmission Operators

Curtailment of long-term fixed power source energy generation (nuclear,

7 hydro and geothermal power)

Thermal power generation adjusted to the output
levels of solar and wind power
Geothermal and hydroelectric power generation(excluding pumped-storage hydroelectric power generation)
Nuclear power
Midnight

Morning

Noon

Afternoon

Midnight

Output curtailment volume~Concept of output curtailment by group~Group EGroup GGroup B

Group DGroup GGroup B

Group AGroup CGroup F

Group AGroup E

Day 1

Day 2

Day 3

Day 4

Day X

…

Group F

Source: Compiled by CSAM based on the “Operational Policy on Power Transmission andDistribution” by the Organization for Cross-regional Coordination of Transmission
Operators and “Guideline on Fairness of Output Curtailment (formulated on March
2017, amended Oct 2019)” by METI’s Agency for Natural Resources and Energy

47

Overview of FIP System
 Overview of FIP system The FIP system allows for the sale of electricity to the wholesale market and arms length transactions as well as paying a premium,the spread between the designated standard price and market price.
 Under the FIP system, buyers are not limited to power distributors of large utility companies and retailers. In addition, the purchaseprice fluctuates depending of the time of day.
Revenue dynamics of FIP system
Revenue aftersubsidy

Anticipated revenue after subsidy(designated standard price <FIP price>)*pre-determined

Difference between FIT and FIP
FIT Power purchased at fixed price Buyers are power distributersof large utility companies

Premium

Power producer

FIP Receive subsidy calculated based onmarket price Buyers are wholesalers and retailers
Power producer

Anticipated revenue
from market transaction(reference price)

Marketprice*linked to fluctuations in
expected revenue frommarket transactions

Designated standard price - reference price =premium

Aggregator
Top utilities

Wholesale market

Retailer

Reference method for anticipated revenue (reference price) of market transactions, etc., and flow of premium allocation

Determination of the average market price for the previous year
－ Calculate the one-year weighted average of spot and pre-market prices by area, taking into account power generation characteristics.



Determination of the unadjusted premium unit price for the current month－Calculate using the formula: "annual average market price for the previous year + monthly adjusted price (= monthly average market price for the current
year - monthly average market price for the previous year)"

Determination of adjusted premium unit price for the current month－Calculate using the formula: premium unit price before adjustment for the current month × total electricity supply for all areas by power source for thecurrent month (incl. 0.01 yen/kWh time slot) divided by total electricity supply for all areas by power source for the current month (excl. 0.01 yen/kWh slot)



Determination of the amount of premium for the current month－Calculate using the formula: adjusted premium unit price for the current month x electricity supply* in the FIP business for the current month(* Amount of renewable electricity generated by certified power generation facilities and supplied on the market during the current month (excl. 0.01 yen/kWh slot )To be determined after taking into account other factors, including premium during the curtailment time, values outside the wholesale electricity market, balancing costs, rules on aggregation business and requirements for shifting FIT to FIP
Source: Agency of Natural Resources and Energy, Ministry of Economy, Trade and Industry Website

48

Overview of Relevant Rules
 Detailed rules and procedures were announced by combined meetings under the leadership of Agency for Natural
Resources and Energy (ANREA) in February of 2021 and after various considerations were conducted, various systems
have been started since April 2022 .
Regulation to maintain cash reserve for power plant demolition costs

Categories subject to the
cash reserve system

All PV operations with FIT/FIP certificates of more than 10 kW or more

Cash reserve method

In principle, PV operators with FIT/FIP certificates put cash reserve for demolition cost on OCCTO by withholding such cash
reserve from incoming electricity revenue. Exceptionally, cash reserve within PV operators shall be permitted under certain
conditions⇒ For listed infrastructure funds internal, cash reserve was permitted as meeting certain requirements above

Cash reserve period

For ten years prior to the end of the FIT period with a monthly frequency

Cash reserve amountFor accredited PV projects whose procurement prices have already been determined by FY2019, the reserve amount is the levelof assumed costs for decommissioning, etc. in the procurement price calculation determined by the Procurement Price
Calculation Committee Non-operational PV Project : Automatic Cancellation of FIT Certificate
 Shall judge the progress status such as application for grid connection work in one year after the operational deadline in case of PV which
has an operational deadline after April 1, 2022
 Shall judge the progress status in one year after April 1, 2022 in case PV of which operational deadline is delayed as of April 1, 2022

FIT/FIP Act “Nullification Rules ( Shikko-seido)”
Scenario-1: Legislation
date prior to cut-off
deadline

Rule-1Rule-2Rule-3(exception)

Operational
periodFIT approval

Operational
periodFIT approval

Cut-off
deadline

Caution: Cut-off deadline for nonsolar projects that received FIT
approval between FY2012~2017 isdetermined based on a benchmarked
date (December 12, 2020).

1 year (as of one year after the cut-off deadline, an ICCA (interconnection
construction commencement application) was accepted by the relevant utility)
Approval nullified
End of operational period (as of one year after the cut-off deadline, an ICCA
was accepted by the relevant utility)
Approval nullified
FIT period expiry (as of one year after the cut-off deadline, an ICCA wasaccepted and METI has confirmed the construction plan notice)
Approval nullified after FIT
period expiration

Scenario-2:
Cut-off deadline
expired as of legislation
date

Rule-1Rule-2Rule-3(exception)

Cut-off
deadline

Duration of
approval date tocompletion date
FIT approval

Legislation
date

Deadline expiry

Duration of
approval date tocompletion date
FIT approval

Deadline expiry

1 year(as of one year after completion, an ICCA has not been accepted)
Approval nullified

End of operational period (as of one year after completion, an ICCA wasaccepted)
Approval nullified
FIT period
expiry(as of one year after completion, an ICCA was accepted and METI
has confirmed the construction plan notice)
Approval nullified after FIT
period expiration

49

Disclaimer• This document has been prepared to provide information, and is not for soliciting and inviting investments in or recommendingtransaction of certain products. We request investors to make investments with their own responsibility and judgment.
• This document does not constitute a disclosure document or a management report based on the Financial Instruments andExchange Act, the Act on Investment Trusts and Investment Corporations or the listing regulations of the Tokyo Stock Exchange.
• In addition to information on Canadian Solar Infrastructure Fund, Inc. (the "Investment Corporation"), this document includes
figures, tables and data prepared by Canadian Solar Asset Management K.K. (the "Asset Manager") based on data/index and otherinformation released by third parties. Analysis, judgment and other views of the Asset Manager on such information at the time of
preparation are also included in this document.
• The information contained in this document is not audited and there is no assurance of the accuracy and certainty of suchinformation. Analysis, judgment and other non-factual views of the Asset Manager represent views of the Asset Manager at thispoint in time. Different views may exist or the Asset Manager may change its views in the future.
• Figures under the same items of other disclosed materials may differ from figures presented in this document due to difference inthe rounding of fractions, etc.
• While the Investment Corporation takes reasonable care in the preparation of this document, there may be errors. Readers arealso cautioned that the contents of this document may be corrected or changed without prior notice.
• The Investment Corporation and the Asset Manager assume no responsibility for the accuracy of data, indexes and otherinformation released by third parties.
• This document includes statements regarding future policies, etc. of the Investment Corporation. However, these statements do notguarantee said future policies, etc.
• For the convenience of preparing graphs, the dates indicated herein may differ from actual business dates.

50